according to recent 10k, looks like only 23.5 mn left in accretable discount left (we lost $4mn?) with nothing coming due in the near term. Assuming, we accrete over 3-years, I don't see how we get much more than 75c a share to be paid out - and that assuming the 270mn in cash gets put to good use. I think 25c for this coming div is fine given what they've said for Q1 but it doesn't seem like we can sustain it beyond without levering up.....7.5% unleveled yield is not bad in this environment but wonder if pps reacts negatively .... any thoughts?
and when i speak of yield, i do not include return of capital. Clearly, they could hand us back cash and keep the "stated" dividend high....it looks like they made a decent trade (although we'll see how the REO goes) last year with Barclay's (is that why Starwood was so hot n heavy for them?).....they need to do another one like that